Businesses need a clear understanding of shipping and logistics operations to ensure the smooth running of operations and a better functioning supply chain.
Freight Forwarding is the decisive planning and implementation of logistics for shipping goods internationally. A freight forwarding company serves as the medium through which goods sent from an individual or organization reach their final point of destination safely and timely.
They perform tasks such as planning, storing goods, logistics rate negotiations, tracking goods, and customs documentation. Regular modes of transportation freight forwarders use to deliver goods include sea, road, air, or rail shipment.
Roles and Functions of a Freight Forwarder
Freight forwarders play a crucial role in business. They act as the connection between the good’s sender and the recipient. Currently, cargo companies have taken on additional roles. They now transport goods by utilizing their modes of transportation or contacting other transport providers.
Here are some key functions shipment organizations play that benefit individuals and businesses.
Plan and Organize Transportation of Goods
The freight forwarder plans and organizes the best mode of transportation for their clients’ goods depending on the type of goods being transported on their accord. The client can choose between road or rail transportation, airlines, or shipping lines.
Most freight forwarding companies provide transportation services. Their mode of shipment may differ depending on the company needing their service, local or international transportation, geographical areas, and the types and quantity of goods transported.
Advising the Shipper
The cargo company or agent offers advice to help clients transport their goods more efficiently and stress-free. They ensure the client knows all possible obstacles to transporting goods and negotiate transport costs with a service company if the freight forwarder doesn’t offer transport services.
Some forwarders offer boutique transport services, which only offer their clients air and ocean transport services. A logistics company’s expertise in shipping laws, transportation expenses, and banking rules and regulations go a long way to fasten and ease the shipping process.
Packaging, Storing, and Distribution of Goods
Freight forwarders ensure the proper packaging, storage, and distribution of goods before shipping or after delivery. The type of goods transported will determine the best way to package them. Proper packaging of goods ensures they arrive in one piece, undamaged.
The forwarder can also effectively store goods before exporting or importing them while waiting to transport or distribute them to the final destination safely and on time.
Clearing of Customs and Documentation
A shipping company’s procedure is preparing and presenting exportation and importation documents that act by the agreement of customs regulations and all necessary shipping requirements. A logistics company acts on behalf of its client to examine and assess customs, pay shipping duties and arrange transportation to deliver goods from the port on arrival.
Provide Insurance for Goods
Some of the best freight companies encourage and arrange for their clients to purchase cargo insurance on a gratis basis as part of the services they offer. The cargo insurance, however, applies only to certain countries. In European Union (EU) member countries, it is illegal for freight countries to sell insurance to their clients.
The EU Insurance Mediation Directive (IMD) requires that all insurance sellers register with the Financial Services Authority (FSA) and bans all UK logistic firms from selling cargo insurance.
Payment of logistics and national taxes
The freight forwarder is responsible for planning and paying national and freight taxes on behalf of their clients. Addressing this helps to prevent cargo claiming delay at the port of arrival. According to international conventions, shippers are responsible for CMR protection, updating clients, issuing legal permission for the transportation duration, and obeying ADR’s shipping regulations on harmful products.
Choosing The Right Freight Forwarder
With the constant rise of difficulties in international transport and logistics systems, the role of freight forwarding companies in the logistics industry is as vital as ever. Hiring the right forwarder for you or your company will ensure smooth business operations and quality service. When selecting a cargo shipping business, ensure you can trust the agency or company.
It’s ideal to go with a company that understands your needs and concerns and can provide the necessary support for that need, ensuring your success. Choosing the right forwarder will go a long way in improving your supply chain and delivery.